GEODIS has achieved the targets of its “Ambition 2023” plan two years ahead of schedule, demonstrating the reliability of its business model

• Revenues: €10.9bn, +28% compared to 2020 and +33% compared to 2019, at constant perimeter and exchange rate
• EBITDA[1]:€948m, 33% above 2020 level and 38% higher than in 2019
• Very strong generation of operating cash flow leading to a substantial reduction in net debt

Marie-Christine Lombard, Chief Executive Officer of GEODIS, declared:

“In 2021, GEODIS met the targets of its ‘Ambition 2023’ strategic plan two years ahead of schedule, both in terms of revenue and EBITDA. This performance validates the Group strategy and confirms the value creation for its shareholder, SNCF.

“In less than 10 years, GEODIS, the French leader, has become the 4^th largest European player in the logistics sector and the 7^th largest in the world, with revenues that have grown by more than 50% and an operating margin that has increased fivefold during this period. I would like to thank our customers for their trust (89% satisfaction rate), as well as our employees for their unwavering commitment to the Group (80% satisfaction rate).

“In 2022, GEODIS will continue implementing the three pillars of its strategic ambition: the development of an end-to-end service offering for freight delivery, the strengthening of its e-commerce logistics offering, and a policy of targeted investments in both strategic assets (logistics real estate including robotics, decarbonated trucks) and acquisitions to bolster our presence in key countries (North America, Europe and Southeast Asia).

“In 2022, GEODIS will strengthen its commitment to ESG by including environmental and social responsibility issues in the variable compensation for top management.”

A historic year for GEODIS in a favorable market environment

• Revenue of €10.9bn, +33% compared to 2019 on a like-for-like basis[2] (+28% compared to 2020), driven by sustained activity across all the Group’s Lines of Business and regions. In particular:

• The Freight Forwarding Line of Business benefited from a very positive market environment owing to a favorable price effect and increased volumes. Its revenue in 2021 stood at €4.9 billion, +66% compared to 2019.

In a context of extreme tension in the air and sea freight market, GEODIS managed to secure transport capacities to ensure the continuity of its customers’ supply chains, by:

• Chartering vessels and securing long-term shipping capacity between Asia and Europe,
• Strengthening its air charter program and launching a dedicated cargo aircraft.

• The contract logistics business has been boosted by the boom in e-commerce and market dynamism in the United States and Europe.

The Group’s activities linked to e-commerce now represent more than a quarter of sales in 2021, which illustrates GEODIS’ ability to adapt its offering to market expectations.

• Record results, well above pre-pandemic levels: post-IFRS 16 EBITDA rose by +38% compared to 2019 (+33% versus 2020) to €948m, resulting in an EBITDA margin of 8.7%thanks to the combined effect of relevant commercial initiatives, strong operational performance and tight cost management.

• Sound financial position: strong generation of operating cash flow, allowing a substantial reduction in net debt and a leverage ratio[3] below 1x.

Structural investments in 2021 focused on GEODIS’ sustainable growth

In line with its “Ambition 2023” plan, GEODIS carried out strategic and targeted investments in 2021 that contributed to the Group’s sustainable growth, both through external growth operations and the acquisition of transport and logistics capacities.

• GEODIS made some bolt-on acquisitions to meet customer demand with an enhanced service offering and a stronger geographic presence in strategic markets:

• The acquisition of Pekaes and Transport Perrier will reinforce the Road Transport Line of Business’ network for palletized freight in Poland and France.
• The Distribution & Express Line of Business, which is experiencing strong growth, has expanded its offer in the healthcare sector through the acquisition of Gandon Transports, a leading player in the transport of temperature-controlled pharmaceutical products in France.

• As part of its objective to reduce its CO₂ emissions by 30% by 2030 (compared with 2017 levels), GEODIS has ramped up the implementation of low-carbon and carbon-free transport solutions:
• Implementation of a Sustainable Fuels offer, providing customers with a sustainable alternative fuel for air and sea freight, in addition to the solutions already available for road freight.
• Ordering 330 light commercial vehicles and heavy trucks from Iveco running on bioNGV fuel. This investment will help reach the target of ensuring 100% carbon-free deliveries in the city centers of 37 French metropolises by 2023.
• Already the French leader in multimodal transport, GEODIS intends to develop its offering, in particular through the recent launch of a new France-Italy rail-road transport route.

• GEODIS is investing in strategic assets. The Group has purchased land in Venlo, the strategic logistics hub in Holland close to the German border, with the intention of building a 130,000 m² logistics facility incorporating the latest environmental standards.

Development of the digital offer

• Upply,a marketplace launched in 2018, trebled its sales in 2021, driven by strong growth in its transport price benchmarking activity. In 2022, the company intends capitalize on its position as the European leader in benchmarking and expects increasingly rapid growth for the marketplace.

• The eLogistics offer, developed to meet customers’ expectations in the context of the e-commerce boom, gained momentum in 2021 with three new sites in the United States. It will soon be launched in Europe.

Responsible growth rooted in an ambitious ESG approach

• ESG rating: the GEODIS ESG strategy has been awarded the EcoVadis Gold rating for the last ten years. This is a recognition of the commitment of both management and employees.

• Diversity and inclusion: beyond the environmental ambition of reducing its CO2 emissions, GEODIS has made inclusion one of its priorities. In 2017, women held 13% of the Group’s top management positions. By 2021, this figure had risen to 20% and it will reach 25% by 2023.

• Governance: starting in 2022, GEODIS has decided to include ESG as one of the criteria for up to 25% of the variable remuneration of Executive Committee members and the 150 Top managers. This criterion will cover the environment, gender parity and employee commitment.

A promising outlook in the short term

The Group’s objective is to maintain a favorable growth dynamic in a context where the logistics sector remains favorable in the short term, but where medium-term uncertainties persist: inflationary trends, pressure on capacities (particularly regarding sea freight), geopolitical issues, and the continuing uncertainty surrounding the ongoing public health crisis.

[1] Post-IFRS 16 EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) consists of revenues and related income minus expenses directly attributable to the business

[2] At constant perimeter and exchange rates

[3] Leverage ratio = Net Financial Debt / pre-IFRS 16 EBITDA

GEODIS – www.geodis.com 

GEODIS is a top-rated, global supply chain operator recognized for its commitment to helping clients overcome their logistical constraints. GEODIS’ growth-focused offerings (Supply Chain Optimization, Freight Forwarding, Contract Logistics, Distribution & Express, and Road Transport), coupled with the company’s truly global reach thanks to a global network spanning nearly 170 countries, is reflected by its top business rankings: no. 1 in France and no. 7 worldwide. In 2021, GEODIS employed over 46,141 people globally and generated €10.9 billion in revenue.

GEODIS plans to open a new multi-user logistics facility in Coswig. The new facility meets the latest environmental and safety standards and is scheduled to be ready for occupancy in October of this year. The new logistics center in the Dresden area, is an example of the global transport and logistics service provider’s continued expansion in Germany.

The new logistics center offers customers a wide range of services. These include inbound and outbound logistics, value-added services, after-sales, and return logistics, as well as high-tech services, for example, the repair and refurbishment of information technology products, as well as the assembly and software configuration of devices, right through to installation at the customer’s site. Value-added services, such as flow and transport management via the Control Tower and e-logistics and e-fulfillment services, complete the range of services at the new Coswig site.

In terms of traffic, the new logistics center is directly connected to the A4 – Bad Hersfeld – Görlitz highway via the S84 and B6. The new building, developed by Garbe Industrial Real Estate, a specialist in logistics and corporate real estate will meet safety and environmental standards. For example, it is planned to line the floors of the two large halls with WGK (water hazard class) foil. With a photovoltaic system on the roof, GEODIS will be able to cover a large part of its electricity requirements. Further sustainable measures such as greening the façade and planting 110 trees and 547 shrubs in the outdoor space will be an additional contribution to improving the carbon footprint, as are e-charging stations for cars and bicycles. Certification to the gold standard of the German Sustainable Building Association (Deutschen Gesellschaft für Nachhaltiges Bauen, DGNB) is planned for the entire property.

“The new multi-user facility in Coswig is another step in our growth strategy. As a central multimodal transport hub, the Dresden metropolitan area has ideal conditions for fast and environmentally friendly transport routes within Germany, as well as to Poland and the Czech Republic,” stresses Thomas Kraus, GEODIS President & CEO North, East and Central Europe, underlining the location’s advantages.

“The establishment of innovative companies from the high-tech, greentech, and robotics sectors in this region also offers interesting market potential to expand our customer portfolio in those growth sectors that are important to us,” says Antje Lochmann, Managing Director of GEODIS’ Contract Logistics activity in Germany.

“As mayor of Coswig, I can say, on behalf of the city council that I’m pleased our efforts in recent years to develop commercial areas have been successful. This large and modern logistics facility is a new location in Coswig that not only meets today’s customer requirements but also sets standards in environmental protection with a comprehensive PV system and green façades,” says Thomas Schubert, Mayor of Coswig.

Image available:  https://geodis.keepeek.com/mIjtSA1Pa

Copyright : Garbe

GEODIS – www.geodis.com

GEODIS is a top-rated, global supply chain operator recognized for its commitment to helping clients overcome their logistical constraints. GEODIS’ growth-focused offerings (Supply Chain Optimization, Freight Forwarding, Contract Logistics, Distribution & Express, and Road Transport), coupled with the company’s truly global reach thanks to a global network spanning nearly 170 countries, is reflected by its top business rankings: no. 1 in France and no. 7 worldwide. In 2020, GEODIS employed over 41,000 people globally and generated €8.4 billion in revenue.

Seven Mercedes-Benz Actros tractor units will be added to GEODIS’ fleet of prime movers in the Asia-Pacific Region (APAC).  The leased vehicles are equipped with the latest security and safety technology and will be utilized on the logistics operator’s owned network in Southeast Asia.

Supplied by the manufacturer’s Malaysian distributor, Hap Seng Trucks Distribution Sdn Bhd and leased from Euroasia Total Logistics (ETL), the new Actros 5 models will be the first of their type to be sold by Mercedes-Benz in Malaysia.

GEODIS has recently expanded its road network in the region with service destinations in Vietnam added to its existing full and partial load service linking Singapore with Malaysia and Thailand.  The network will eventually connect with Chinese markets on a day-definite, door-to-door basis delivering a road transport alternative to the more costly air, and slower ocean, options.

Lakshmanan Venkateswaran, Sub-Regional Managing Director – South East Asia of GEODIS said, “The rapid expansion of our road mode offerings along the spine of Southeast Asia’s economic backbone has resulted in more than 50% increase in volumes since the service’s inception in late 2019.  Linking Singapore to Kuala Lumpur and Bangkok, and now into Vietnam our owned network brings reliable transit-times and cargo security. This new equipment will further enhance these service attributes and aid the fast-growing businesses of our high-tech, retail, ecommerce and FMCG customers.”

The supply of the Mercedes-Benz Actros tractor units breaks new ground for general distributor Hap Seng Truck Distribution Sdn Bhd. “The units feature state-of-the-art safety and security technology including fifth generation Active Brake Assist, Lane Keeping Assist and MirrorCam in place of a conventional rear-view mirror. The MirrorCam is truly innovative and aerodynamically sophisticated. This creates a saving on fuel of up to 1.3% and offers improved visibility to the rear and in the area of the A-pillar. The MirrorCam also provides added safety during manoeuvring by panning the camera image according to the vehicle’s movements,” commented Mr. Derrick Sim Leng Huat, Chief Executive of Hap Seng Trucks Distribution Sdn Bhd. 

The Actros 5 have been delivered at a Key Handover Session inKuala Lumpur on January 15 at which the lease provider Euroasia Total Logistics (M) Sdn Bhd’s Group CEO, Mr Darren Lee said, “It is not just the safety features of these trucks that make them a superior choice but also their improved fuel efficiency and longer service intervals in comparison with older models.  Downtime is reduced with regular maintenance required only every year (or 55,000 km); a significant upgrade over the industry standard of six months (or 30,000 km).  There are few competitors that can match their performance and we applaud GEODIS decision to employ them.” 

These vehicles are further equipped to ensure the cargoes are well protected. The keyless starting and remote key access ensure that the driver’s presence is in close proximity to the vehicle at all times together with the remote key, otherwise the vehicle cannot be operated. In addition, specially designed door extensions conceal the access steps into the vehicle which enhances safety and contribute to theft protection.

Since March 2021, GEODIS has expanded its road network capabilities by offering both standard and personalized solutions including its RoadDirect, RoadFast, and RoadSave services. GEODIS balances transit time and costs to ensure customers can tailor the solution that best fits their needs.

In conclusion, Lakshmanan Venkateswaran said, “If ASEAN aspires to see more freight traffic, road borders must see improvement in clearance procedures. Belt road initiatives need the ASEAN countries to harmonize the documentation required to transit their territories. Our owned network and trusted partners play a role in coping with these obstacles, but improvements would be welcomed.  Just so our investment in better vehicles will assist with the challenge of driver recruitment and retention”.

GEODIS – www.geodis.com 

GEODIS is a top-rated, global supply chain operator recognized for its commitment to helping clients overcome their logistical constraints. GEODIS’ growth-focused offerings (Supply Chain Optimization, Freight Forwarding, Contract Logistics, Distribution & Express, and Road Transport), coupled with the company’s truly global reach thanks to a global network spanning nearly 170 countries, is reflected by its top business rankings: no. 1 in France and no. 7 worldwide. In 2020, GEODIS employed over 41,000 people globally and generated €8.4 billion in revenue.